What does the Regular Savings Plan offer?
The Regular Savings Plan allows you to save as much as you want in a tax efficient way. The Regular Savings Plan combines tax-free saving, in addition to your tax-free ISA allowance, with tax-paid so that your savings can work harder for you and not the taxman. It's a 10-year With-Profits savings plan and anyone aged between 16 and 64 can invest.
The Regular Savings Plan gives your plan a starter bonus too, if you invest more than £30 a month - a tasty start to your investment.
Tax-free and tax-paid savings
The Regular Savings Plan is a 10-year savings plan and you can save from as little as £15 a month and there's no limit to how much you can save.
No matter how much you invest, the first £25 of your monthly contributions will be invested tax-free. That's because under current law, you can save this amount tax-free with a friendly society.
The rest, if any, will have the tax on any growth automatically deducted by Scottish Friendly. So if you invest £60 a month, £25 will grow tax-free and £35 will grow tax-paid.
Whatever amount you decide to invest at the end of your term there will be no tax to pay, even for a higher rate taxpayer. Tax-free means free of income and capital gains tax except for taxes on UK dividend income from UK shares.
Your plan is invested in our with-profits fund which is managed across a range of assets for long-term growth, as well as a degree of security in the form of a guaranteed minimum cash sum. The with-profits guide provides full details of how we go about managing your money.
A starter bonus to boost your return - if you invest more than £30 a month
Your starter bonus is added to your Plan, if you invest more than £30 a month when you start saving and is designed to reduce the effect of charges on your Plan. It's based on the amount you invest. If you save between £30 and £45 a month, a quarter of the first year's premium will be added to the guaranteed cash sum as a starter bonus. If you save £50 a month or more, the starter bonus will be half of your first year's premiums. That's £600 if you save £100 a month. Please note that to get the full benefit of your starter bonus, you will need to make all your regular payments.
A guaranteed cash sum - plus potential bonuses!
When you take out a Regular Savings Plan, you have the reassurance of knowing that after 10 years you will get back a guaranteed minimum cash sum. Your actual guaranteed minimum cash sum will depend on your age and how much you pay in each month.
At first your guaranteed minimum sum will be less than your total payments into the plan over 10 years, however it's designed to grow through the addition of potential regular bonuses. You may also benefit from a more significant final bonus at the end of your term.
The value of bonuses cannot be guaranteed in advance as they depend on how much profit we make and how we decide to pay it out to our policyholders. Fortunately, as we don't have any shareholders, all of our profits are shared among savers like you.
Remember that because the Regular Savings Plan is intended to be taken out over 10 years, you may not get back as much as you have paid in should you cash in early.
You're in charge
There's no upper limit to how much you can save in the Regular Savings Plan (the minimum is £15 a month) but the more you save the bigger the payout could be at the end of 10 years. You'll see how both your tax-free and tax-paid savings are performing from your annual statement.
Life cover built in
Your Regular Savings Plan automatically includes life cover so that if you were to die during the term of the plan, you have the reassurance of knowing your family would receive a guaranteed cash sum at a difficult time. The amount of life cover depends on age and may be subject to medical conditions. Anyone aged between 16 and 64 can invest. You should consider if life cover is appropriate for your financial needs.
Look how much you could get back after 10 years
Projected returns on £60 a month invested over 10 years*.
Projected returns for illustration only. Remember your original investment is not guaranteed and you could get get back less than the amounts shown.
Source: Scottish Friendly. Based on someone aged 40 next birthday at outset saving £60 per month (*a total investment after 10 years of £7,200), the premium is split £25 invested on a tax-free basis and £35 invested on a tax-paid basis.
| Illustrated growth rates used for: | lower rate | middle rate | higher rate |
|---|---|---|---|
| Tax-free part of investment | 4.75% p.a. | 5.75% p.a. | 6.75% p.a. |
| Tax-paid part of investment | 4% p.a. | 5% p.a. | 6% p.a. |
The annual rates of growth have been based on our reasonable estimate of potential returns and are lower than the maximum allowable investment growth assumptions. All the figures include the deduction of the actual charges assumed on the Plan. These figures are only examples and the projected benefits are not guaranteed. They are based on premiums being paid for the full 10 years. They are not maximum or minimum amounts; what you get back depends on how your investment grows and the actual level of future bonuses. You could get back more or less than this.
Do not forget that inflation would reduce what you could buy in the future with the amounts shown. (For details on the effect of deductions on your plan, please see The Early Years section of the Key Features).
Apply now
Applying is easy. Simply click on the Apply Online Now link, read the Key Features and With-Profits Guide then complete and submit your application today. Or if you'd prefer to apply by post click on the Download Application Form link, to download an application form, read the Key Features and With-Profits Guide then complete it and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR
When you start saving with us, you'll receive a gift. Choose either a £15 Marks & Spencer or iTunes vouchers. Don't forget to select which gift you would like on your application form.
Or, you can request an information pack to be sent to you in the post. This pack includes further information on the Tax-Friendly Regular Savings Plan and an application form.
If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.
If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the Key Features and With-Profits Guide.
